AT&T to Offer Leading Portfolio of Windows Phones

New Exclusive Windows Phones from HTC, LG and Samsung Deliver Apps and Entertainment

Dallas, Texas, Redmond, Washington, October 11, 2010

newsrelease

AT&T* and Microsoft Corp. today introduced a leading portfolio of new phones based on Windows Phone 7 , Microsoft's new mobile operating system that has been the focus of worldwide buzz and bandwidth for months. The new smartphones from HTC, LG and Samsung will be available exclusively for AT&T customers ahead of the holiday shopping season.

“These devices – quite literally – are game changers, and we are delighted to bring them to our customers,” said Ralph de la Vega, president and CEO of AT&T Mobility and Consumer Markets. “It's a perfect match – phones that re-define gaming and entertainment, riding a network that assures customers a high-speed experience.”

“AT&T has long been a leader in the smartphone market, and we're pleased that the powerful, new experiences in Windows Phone 7 will debut on a very fast and reliable mobile broadband network,” said Steve Ballmer, chief executive officer at Microsoft. “With Windows Phone 7, Microsoft has taken the most engaging and useful experiences across the company and delivered them in a single point of focus and value for customers nationwide.”

Each of the three smartphones sports a capacitive glass touch screen, 5-megapixel camera and a 1GHz Snapdragon processor, but is designed to appeal to different types of customers. The new Windows Phones for AT&T customers are:

HTC Surround – premiers as the first smartphone to include integrated Dolby Mobile and SRS surround sound speakers. The HTC Surround speakers slide-out and reveal a kickstand for watching video beneath its 3.8-inch touch screen. HTC Surround blurs the line between home and mobile entertainment, making games, music and video on the go more enjoyable than ever.

LG Quantum™ – designed for work, play and everything in between. With a slide-out keyboard for quick use of Office Mobile®, users can stay active and up to date with work. The LG Quantum also features DLNA technology through a preloaded application called Play To, which allows users to wirelessly stream videos, music, and pictures from the phone to a DLNA-enabled TV, stereo, Windows 7 PC and other consumer electronics devices.

Windows Phone 7 has been carefully crafted to help people get more done in fewer steps by bringing important information to the surface with a unique Hub and Tile interface. The Hubs offer quick and easy access to a person's latest and most valuable information and includes People, Pictures, Games, Music & Video, Office and Marketplace content. Windows Phone 7 also integrates with many popular and powerful Microsoft consumer services such as Xbox LIVE®, Windows Live®, Bing® and Zune®.

Apps and Entertainment

Each new Windows Phone from AT&T will include AT&T U-verse Mobile, an app that allows users to download and watch hit shows on their smartphone. U-verse TV subscribers with certain packages will be able to download and watch hit TV shows for no extra charge, and all U-verse TV customers can also schedule and manage their DVR recordings from the app. For the first time, U-verse Mobile will be available nationwide — even to those who are not U-verse TV customers — for just $9.99 per month. Subscribers can access the full content library, select which series or specific episode to download over Wi-Fi, and view on the go wherever they have their Windows Phone.

For a limited time, AT&T customers who choose Windows Phone will get a free Entertainment Pack, redeemable at www.att.com/windowsphone. This offer will provide a download to ‘ilomilo', an Xbox LIVE Arcade game exclusive to Windows Phones from AT&T through the end of the year. In the game, ilo and milo always seems to get separated from each other in their surrealistic world of cubes, and players work to help them reunite. Ilomilo is a stunning example of the incredible graphics and quality of gaming available on Windows Phones through Xbox LIVE.

The offer also includes a free 30-day trial offer for U-verse Mobile and Zune Pass, which gives customers the ability to download or stream more than 10 million songs from Zune plus the option to download and keep 10 songs after the subscription ends. Ilomilo, and a month each of U-verse Mobile and Zune Pass combined represent a nearly $30 value.

Pricing and Availability

All three Windows Phones from AT&T will be available in AT&T company-owned retail stores and online at www.wireless.att.com for $199.99. The Samsung Focus will be available November 8 and the HTC Surround and LG Quantum will be available in time for the holidays.

1 Prices listed above require a 2-year service agreement and smartphone data plan. 2 Mobile Broadband/3G coverage not available in all areas.3Limited-time offer. Other conditions & restrictions apply. See contract & rate plan brochure for details. Subscriber must live & have a mailing addr. within AT&T's owned wireless network coverage area. Up to $36 activ. fee applies. Equipment price & avail may vary by mrk & may not be available from independent retailers. Early Termination Fee: None if cancelled in the first 30 days, but up to $35 restocking fee may apply to equipment returns; thereafter up to $325. Some agents impose add'l fees. Smartphone Data Plan Requirement: Smartphones require a DataPlus (200MB) or DataPro (2GB) plan. If you exceed your initial data allowance, you will automatically be charged an additional $10 for each additional 1GB provided on DataPro or an additional $15 for each additional 200MB provided on DataPlus. All data allowances, including overages, must be used in the billing period in which the allowance is provided or they will be forfeited. For more details on Data Plans, go to att.com/dataplansSales tax calculated based on price of unactivated equipment. 4 Geographic and service restrictions apply to AT&T U-verse. Call or go to www.att.com/u-verseto see if you qualify. AT&T U-verse services are provided by AT&T local telephone companies. U-verse Mobile: Download and watch capability available for select shows and requires select smart phones, Wi-Fi connection, and qualifying U-verse TV plan or, following launch in November, a monthly subscription fee. Downloaded shows are available for viewing for limited time periods. Ability to browse the TV guide and manage DVR available to all U-verse TV customers. Download and watch hit TV shows with U-verse Mobile free for 30 days: Offer ends 12/31/2010. After the first 30 days, you will automatically be charged a $9.99 monthly subscription fee on your AT&T Wireless bill. To avoid being charged, cancel during the first 30 days by calling 800-331-0500. You may cancel at any time. Standard data charges may apply.

Cautionary Language Concerning Forward-Looking StatementsInformation set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise.

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

About AT&TAT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates - AT&T operating companies - are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation's fastest mobile broadband network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet and voice services. A leader in mobile broadband, AT&T also offers the best wireless coverage worldwide, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse® and AT&T |DIRECTV brands. The company's suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising. In 2010, AT&T again ranked among the 50 Most Admired Companies by FORTUNE® magazine.

About MicrosoftFounded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realise their full potential.

This material is for informational purposes only. Microsoft Corp disclaims all warranties and conditions with regard to use of the material for other purposes. Microsoft Corp shall not, at any time, be liable for any special, direct, indirect or consequential damages, whether in an action of contract, negligence or other action arising out of or in connection with the use or performance of the material. Nothing herein should be construed as constituting any kind of warranty. If you are interested in viewing additional information on Microsoft Corp, please visit the Microsoft web page at http://www.microsoft.com/presspass on Microsoft's corporate information pages.